Question 1

You need to define a chart of accounts that includes an intercompany segment. Your customer plans to usesegment value security rules for the Company segment.What is Oracle’s recommended method to define this chart of accounts?

Options :

A : Define the company segment only and qualify it as both the primary balancing segment and intercompany segment

B : Define two different charts of accounts

C : Share the same value set for the company and intercompany segments to reduce chart of accounts maintenance

D : Use two different value sets for the company and intercompany segment because segment value security rules are at the value set level

Answer: D

Question 2

You are defining an income statement report using Financial Reporting Studio. Users of the report need to beable to analyze the balances directly from the report.What should you enable to allow this?

Options :

A : Nothing. All report are drillable

B : Drill Through in Grid Properties

C : Drill Down in Report Functions

D : Allow Expansion in Report Functions

Answer: C

Question 3

Your customer has a large number of legal entities. The legal entity values are defined in the company segment which represents the primary balancing segment. They want to easily create eliminating entries for their intercompany activity. What would you recommend?

Options :

A : Define an intercompany segment in the chart of accounts. The Intercompany module and the Intercompany balancing feature in general ledger and subledger accounting will automatically populate the intercompany segment which the balancing segment value of the legal entity with which you are trading

B : There is no need to define an intercompany segment, the Intercompany module keeps track of the trading partners for you based on the intercompany rules to define

C : Define an intercompany segment and qualify it as the second balancing segment to make sure all entries are balanced for the primary balancing segment and intercompany segment

D : There is no need to define an intercompany segment. You can track the intercompany trading partner using distinct intercompany receivable/payable natural accounts to identify the trading partner

Answer: A

Question 4

You operate in a country whose unstable currency makes it unsuitable for managing your day-to-day business. As a consequence, you need to manage your business in a more stable currency while retaining the ability to report in the unstable local currency. What would be your recommendation when defining ledgers?

Options :

A : Run Revaluation as often as you need to the more stable currency and report on the more stable currency’s balances

B : Run Revaluation to translate into Statistical Currency

C : Create a secondary ledger that uses a different chart of accounts that is denominated in the more stable currency

D : Use Journal-Level or Subledger-Level Reporting Currencies denominated in the more stable currency

Answer: D

Question 5

You defined a tree or hierarchy, but you are unable to set its status to Active. What is the reason?

Options :

A : Two tree versions were not defined

B : An Audit process needs to be successfully performed before a tree version can be set to Active

C : Accounting Configuration was not submitted

D : Chart of accounts was not deployed

Answer: B

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